# Harish Chandra Bhati v. Principal Commissioner of Income Tax, Noida & Ors

- **Citation:** (2022) 5 ILRA 1587
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2022-05-19
- **Case number:** Writ Tax No. 465 of 2022
- **Bench:** Surya Prakash Kesarwani, Jayant Banerji
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/harish-chandra-bhati-v-principal-commissioner-of-income-tax-noida-ors-48450
- **Pages:** 10

## Headnote

Sri Gaurav Mahajan, Sri Arvind Kumar
Goswami, Sri S.P. Singh (A.S.G.I.), Sri
Ashish Agarwal

A. Court is frequently coming across writ
petitions in which impugned orders reflect nonobservance of principles of natural justice and
eve reply submitted by assesses is not being
considered by Assessing Officers under the
faceless regime as well as non-faceless regime
under the Act, 1961.

B. Taxpayers are important pillars of economy of
the country. Their harassment not only causes
jolt to the economy of the country and also
employment and also comes in the way of
economic policy of the Government including
the policies "Ease of Doing Business". The
instructions dated 23.04.2022 issued by the
CBDT in exercise of powers conferred u/S 119 of
the Act, 1961 and St.ment made by the
Respondent No.04 in the afore quoted Para 10
of the personal affidavit dated 19.05.2022 needs
to be implemented truly and effectively and,
therefore, necessary mandamus needs to be
issued to the respondents.

Writ Petition disposed of. (E-12)

## Text

5 All. Harish Chandra Bhati Vs. Principal Commissioner of Income Tax, Noida & Ors.
1587
appellate order has attained finality and refund
arisen therefrom is not refunded within sixty
days from the date of receipt of application filed
consequent to such order, interest at such rate
not exceeding 9% as may be notified by the
Government on the recommendations of the
Council shall be payable in respect of such
refund from the date immediately after the
expiry of sixty days from the date of receipt
of application till the date of refund. Thus, the
amount refunded by the respondents pursuant
to the appellate order dated 30.06.2018
communicated on 09.07.2018, the interest shall
be liable to be paid by the respondents to the
petitioner for the period from 09.09.2018 to
31.03.2022.

26. In the present set of facts, the
respondents have committed wrong firstly by
not showing the deposit under IGST Act,
secondly by showing the deposit by creating
temporary ID at its own and thirdly, not
informing the petitioner the password for the
temporary ID so created, to enable him to apply
in the prescribed form. The Respondent No.1 in
paragraphs-16, 17 and 18 of her personal
affidavit dated 25.04.2022 (aforequoted) has
herself stated that due to technical glitches, the
temporary I.D. of the petitioner was not
available at the end of proper officer's login as it
was at development stage of GST Portal and
hence it was not possible to provide the
password to the petitioner from the proper
officer's end, and it was the effort made at the
end of the respondent No.1 that it became
possible to activate the temporary ID at the
login of the proper officer to provide password
when the entire problem came into knowledge
of the respondent No.1 and thereafter, on
receiving the password, the petitioner made
online application in RFD-01 on 31.03.2022.
Thus, the respondents arbitrarily and illegally
withheld the amount of refund despite the order
of the first appellate authority dated 30.06.2018
for refund.

27. It is well settled that "construction
which permits one to take advantage of
one's own wrong or to impair one's own
objections under a Statute should be
disregarded. The interpretation should as
far as possible be beneficial in the sense
that it should suppress the mischief and
advance
the
remedy
without
doing
violence
to
the
language",
vide
Commissioner
of
Customs
(Prev.),
Mumbai vs. M. Ambalal, 2010 (260) ELT
487 (para-11). It has also been settled that no
one can take advantage of his own wrong
vide Union of India vs. Shakti LPG Lt.,
2008 (223) ELT 129 (SC) (para-9).
Therefore, applying the aforesaid settled
principles, the respondents cannot be allowed
to take advantage of their own wrong so as to
deny the payment of interest to the petitioner
on delayed refund.

28. For all the reasons afore-stated,
both the writ petitions are allowed. The
respondents are directed to pay interest to the
petitioner within a month from today, for the
period from 09.09.2018 to 31.03.2022, at the
rate notified under Section 56 of the Act.
----------
(2022)05ILR A1587
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 19.05.2022

BEFORE

THE HON'BLE SURYA PRAKASH
KESARWANI, J.
THE HON'BLE JAYANT BANERJI, J.

Writ Tax No. 465 of 2022

Harish Chandra Bhati ...Petitioner
Versus
Principal Commissioner of Income Tax,
Noida & Ors. ...Respondents

Counsel for the Appellant:
1588 INDIAN LAW REPORTS ALLAHABAD SERIES
Sri Ashish Bansal, Sri Bhavnesh Saini

Counsel for the Respondents:
Sri Gaurav Mahajan, Sri Arvind Kumar
Goswami, Sri S.P. Singh (A.S.G.I.), Sri
Ashish Agarwal

A. Court is frequently coming across writ
petitions in which impugned orders reflect nonobservance of principles of natural justice and
eve reply submitted by assesses is not being
considered by Assessing Officers under the
faceless regime as well as non-faceless regime
under the Act, 1961.

B. Taxpayers are important pillars of economy of
the country. Their harassment not only causes
jolt to the economy of the country and also
employment and also comes in the way of
economic policy of the Government including
the policies "Ease of Doing Business". The
instructions dated 23.04.2022 issued by the
CBDT in exercise of powers conferred u/S 119 of
the Act, 1961 and St.ment made by the
Respondent No.04 in the afore quoted Para 10
of the personal affidavit dated 19.05.2022 needs
to be implemented truly and effectively and,
therefore, necessary mandamus needs to be
issued to the respondents.

Writ Petition disposed of. (E-12)
(Delivered by Hon'ble Surya Prakash
Kesarwani, J.
&
Hon'ble Jayant Banerji, J.)

1. Heard Sri Ashish Bansal, learned
counsel for the petitioner, Sri S.P. Singh,
learned Additional Solicitor General of
India assisted by Sri Arvind Kumar
Goswami, learned Central Government
Standing Counsel and Sri Ashish Agarwal,
learned
Standing
Counsel
for
the
respondent-Income Tax Department.

2. A personal affidavit of respondent
No.4, namely, Sri Tarun Bajaj, Revenue
Secretary to the Government of India, New
Delhi dated 19.5.2022 has been filed today
which is taken on record.

3. Learned Additional Solicitor
General has referred to paragraphs 9 and 10
of the aforesaid personal affidavit dated
19.5.2022 and stated that the date of
circular in paragraph 10 has been wrongly
mentioned as 25.4.2022 instead 23.4.2022
and copy of said circular dated 23.4.2022
has already been filed alongwith the
personal affidavit dated 3.5.2022. He
further states that the Government's stand
stated in paragraph 10 of the personal
affidavit dated 19.5.2022 is clear and,
accordingly, the Government shall take all
actions against the erring officers.

4. In the order dated 30.03.2022
passed by this court, submissions of the
learned counsel for the petitioner have been
noted as under:-

"Learned
counsel
for
the
petitioner submits that the two land in
question were jointly owned by seven
persons. The petitioner herein and the
aforesaid Dushyant Bhati both were also
co-owners of the aforesaid agricultural
land which was sold by two separate
registered sale deeds. For the same set of
reasons proceedings under Section 148 of
the Act, 1961, were initiated against the
petitioner and the aforesaid Dushyant
Bhati who is the son of the petitioner. The
Assessment Order dated 23.03.2022 under
Section 147 read with Section 144 B of the
Act, 1961, in respect of Dushyant Bhati has
been passed by the National Faceless
Assessment Centre, Delhi, accepting his
claim that the land in question was
accepted to be an agricultural land situate
beyond 8 km. of municipal limits. Thus the
disclosed income in the returns for the
Assessment
Year
2013-14
has
been
5 All. Harish Chandra Bhati Vs. Principal Commissioner of Income Tax, Noida & Ors.
1589
accepted and no tax has been imposed in
respect of the sale of the land in question. On
the other hand totally contrary view has been
taken in the matter of the petitioner vide
reassessment order dated 28.03.2022, under
Section 147 read with Section 144 B of the
Act, 1961, passed by the National Faceless
Assessment Centre, Delhi, whereby 1/7th of
the consideration in respect of the land in
question, belonging to the petitioner, has been
assessed as a long term capital gain on the
finding that the land in question is not an
agricultural land. Thus, on the same set of
facts while the respondents have accepted the
claim of petitioner's son in respect of the
same land and on the other hand in respect of
the same land the stand taken by the
petitioner has been rejected and the sale
proceeds of the agricultural land has been
assessed as a long term capital gain."

5. In the order dated 18.04.2022,
submission of learned counsel for the
respondent Nos.1, 2 and 3 has been noted, as
under:

"Today, learned counsel for the
respondent nos.1, 2 and 3 states that
conflicting orders are being passed by
National Faceless Assessment Centre and for
which steps shall be taken to remove the
anomalies.

In view of the statement as
aforenoted and also the fact that two
conflicting reassessment orders have been
passed by the National Faceless Assessment
Centre in respect of two co-owners of the
same land, we direct the newly impleaded
respondent no.4 to look into the matter and
file his personal affidavit explaining the state
of affairs and the steps being taken by the
Government."

6. In response, a personal affidavit
dated 03.05.2019 on behalf of Union of
India has been filed by Sri Tarun Bajaj,
Revenue Secretary to the Government of
India who has stated in paragraph-11 of the
affidavit, as under:

"11.
The
petitioner
has
an
alternate administrative remedy in form of
approaching the Local Committee for
grievance settlement instead of approaching
the Court in writ proceedings. Local
committee has been empowered to deal with
Taxpayer's Grievances from High-Pitched
Scrutiny Assessment
upon
receipt
of
grievances, related to High-pitched Scrutiny
assessments completed either under the
Faceless Assessment regime or non-faceless
Assessment regime and ascertain whether
there is a prima-facie case of High-pitched
Assessment, non-observance of principles of
natural justice, non-application of mind or
gross
negligence
of
Assessing
Officer/Assessment Unit. Issues such as the
present case can be resolved by individual
taxpayers through the remedy of approaching
local committees set up for grievance
redressal.

[A True Copy of the Revised
Instruction for dealing with Taxpayer's
grievance
from
High pitched
scrutiny
assessment, dated 23.04.22 (earlier version
being Instruction No 17/2015 dt. 09/11/2015)
is marked as Annexure A]"

7. True copy of instructions/
Circular
F.No.225/101/2021-ITA-II,
Government of India, Ministry of Finance,
Department of Revenue, Central Board of
Direct Taxes dated 23.04.2022 issued
under Section 119 of the Income Tax Act,
1961 and filed as Annexure A-1 to the
personal affidavit dated 03.05.2022 is
reproduced below:

"F.No.225/101/2021-ITA-II

Government of India
1590 INDIAN LAW REPORTS ALLAHABAD SERIES

Ministry of Finance

 Department
of
Revenue

 Central
Board
of
Direct Taxes

*****************

Room No. 245-A, North Block,

New Delhi, the 23rd April, 2022

To

All
Pr.
CCsIT/DGsIT/Pr.CCIT(Exemption)/Pr.
CCIT(International-tax)

Madam/Sir,

Subject: Revised Instruction for
constitution and functioning of ''Local
Committees to deal with Taxpayers'
Grievances from High-Pitched Scrutiny
Assessment' -reg.

The Central Board of Direct
Taxes (the 'CBDT'), by its Instruction No.
17/2015, dated 9-11-2015 (copy enclosed)
provided
for
constitution
of
'Local
Committees
to
deal
with
Taxpayers'
Grievances from High-Pitched Scrutiny
Assessment' in each Pr.CCIT region. The
Local Committees were constituted to
expeditiously
deal
with
Taxpayers'
grievances
arising
from
High-Pitched
Scrutiny Assessment.

2. Taking into consideration the
changes
in
organizational
set-up
subsequent
to
launch
of
Faceless
Assessment regime, the CBDT, in exercise
of its powers under section 119 of the
Income-tax Act, 1961 ('the Act') and in
supersession of its earlier Instruction No.
17/2015 dated 9-11-2015, hereby issues the
following
instructions
regarding
constitution and functioning of 'Local
Committees to deal with Taxpayers'
Grievances from High-Pitched Scrutiny
Assessment':

A. Constitution of Local Committees:

(i) Local Committees to deal with
Taxpayers' Grievances from High-Pitched
Scrutiny Assessment ('Local Committees')
are required to be constituted in each
Pr.CCIT
region
across
the
country
including the Pr.CCIT(Exemption) and
Pr.CCIT(International Taxation).

(a) The Local Committee shall
consist of 3 members of Pr.CIT/CIT rank.
To have a perspective of processes involved
in Faceless Assessment process, Local
Committees so constituted in each Pr. CCIT
region and Pr.CCIT(Exemption) shall have
one Pr.CIT (AU) of the region. The Local
Committee
constituted
under
the
Pr.CCIT(International Taxation) need not
have a Pr.CIT(AU) as a member, as the
assessments
under
the
International
Taxation charges are outside the purview of
Faceless Assessment regime.

(b) The other members may be
selected from the pool of officers posted as
Pr.CsIT/Pr.
CIT(Central)/CIT(Judicial)/
CIT(Audit)/CsIT(DR),
ITAT
of
the
respective Pr.CCIT region. For the Local
Committees
constituted
under
the
Pr.CCIT(Exemption)
and
Pr.CCIT(International Taxation), members
may be selected from their respective pool
of officers.

(c) The senior most Member
would be designated as the Chairperson of
the Committee.

(d) The Addl. CIT (Headquarters)
to such Pr. CCIT would act as a Member -
Secretary to the Local Committee.

(ii) The Local Committees so
constituted may co-opt other members, if
necessary.

(iii) The Pr. CCIT concerned
should ensure that the Local Committees
are
duly
reconstituted
after
transfer/promotion of Members of the
existing Local Committees.
5 All. Harish Chandra Bhati Vs. Principal Commissioner of Income Tax, Noida & Ors.
1591

(iv) Adequate publicity shall be
given
regarding
constitution
and
functioning of Local Committees for filing
of grievance petitions regarding HighPitch
Scrutiny
Assessments.
The
communication address of such Local
Committees
shall
be
displayed
at
prominent places in the office building.

B.
Jurisdiction
of
Local
Committees:

The Local Committees constituted
as above shall deal with the grievance
petitions of the assessees under the
jurisdiction
of
respective
Pr.CCIT
regarding
High-Pitched
Scrutiny
Assessments
completed
under
both
Faceless and non-Faceless Assessment
regimes. These Committees constituted in
Pr. CCIT Region will also handle the
grievances pertaining to Central Charges
located under the territorial jurisdiction of
the Pr. CCIT concerned.

C. Receipt of Grievances:

(i) Grievances related to HighPitched Scrutiny Assessments completed
under the Faceless Assessment regime will
be received by NaFAC through dedicated
e-mail
id:
samadhan.faceless.assessment@incometa
x.gov.in. Grievances so received shall be
forwarded to Local Committee of the Pr.
CCIT
concerned
by
NaFAC,
under
intimation to Pr. CCIT of the Region/
Pr.CCIT(Exemption).

(ii) Grievances related to HighPitched Scrutiny Assessments completed
under
the
non-Faceless
Assessment
regime will be received by the office of
Pr.CCIT concerned, physically or through
e-mail. Grievances so received shall be
forwarded to Local Committee of the Pr.
CCIT concerned.

D. Action to be taken by the
Local Committees on grievance petitions:

(i) A grievance petition received
by
the
Local
Committee
would
be
acknowledged. A separate record would be
maintained for dealing with such petitions
by the Member-Secretary.

(ii) Member - Secretary on
receipt of taxpayers' grievances of HighPitched Assessment, will forward the same
to the Chairman and Members of the
Local Committee within three days of
receipt of the grievance.

(iii)
The
grievance
petition
received by Local Committee would be
examined by it to ascertain whether there is
a prima facie case of High-Pitched
Assessment, non-observance of principles
of natural justice, non-application of mind
or
gross
negligence
of
Assessing
Officer/Assessment Unit.

(iv) The Local Committee may
call for the relevant assessment records to
peruse from the Jurisdictional Pr.CIT
concerned.

(vi) The Local Committee may
seek inputs from the Directorate of Systems
(ITBA/e-filing/CPC-ITR, CPC-TDS, etc.),
on Systems-related issues emanating from
the grievance/matter under consideration,
if considered necessary.

(vii) Local Committee would
ascertain whether the addition(s) made in
assessment order is/are not backed by any
sound reason or logic, the provisions of law
have
grossly
been
misinterpreted
or
obvious and well-established facts on
records have outrightly been ignored. The
Committee
would
also
take
into
consideration whether principles of natural
justice have been followed by the Assessing
Officer/Assessment Unit. Thereafter, Local
Committee shall submit a report treating
the order as High-Pitched/Not Highpitched, along with the reasons, to the Pr.
CCIT concerned.
1592 INDIAN LAW REPORTS ALLAHABAD SERIES

(viii) The Local Committee shall
endeavor to dispose of each grievance
petition within two months from the end of
the month in which such petition is
received by it.

(ix)
Member-Secretary
will
ensure that the meetings of the Local
Committees are held at least twice in every
month during
the
pendency
of
the
grievance petitions and that timely reports
are submitted to the Pr. CCIT concerned.

E. Follow up action by Pr.CCIT:

(i) On receipt of the report of
Local Committee, Pr. CCIT concerned may
take suitable administrative action in
respect of cases where assessment was
found to be High-Pitched by the Local
Committee, which inter alia include:

(a) Calling for explanation of
the Assessing Officer/Assessment Unit
(through Pr.CCIT, NaFAC) and any other
administrative action as deemed fit.

(b) Administratively advise the
Pr.CIT concerned to prevent any coercive
recovery in cases identified as high
pitched by the Local Committee.

(ii) The findings of the report of
the Local Committee may also be shared by
the Pr.CCIT concerned with NaFAC and/or
Directorate of Income-tax(Systems), as
feedback, for revisiting the SOP/policy on
Faceless Assessment and/or addressing
the Systems related issues.

F. Monitoring the functioning of
Local Committee:

(i) The Pr. CCIT concerned
shall review the work of the Local
Committee on a monthly basis. Pr.
CCsIT shall highlight outcome of work of
Local Committees along with the action
taken on the suggestions made by the
Local Committees in respect of cases
where assessment were found to be HighPitched by the Local Committees, in their
monthly D.O. letters to the respective
Zonal Member.

(ii) Quarterly Report regarding
the functioning of Local Committees shall
be furnished by the Pr. CCIT concerned
to the O/o Member (IT&R), CBDT under
intimation
to
the
respective
Zonal
Member in the prescribed format (copy
enclosed) by 15th of the month following
the quarter ended.

3. The purpose of constitution of
Local Committees is to effectively and
efficiently
deal
with
the
genuine
grievances of taxpayers and help in
supporting
an
environment
where
assessment orders are passed in a fair
and reasonable manner. It is to be noted
that Local Committees cannot be treated
as an alternative forum to dispute
resolution/appellate proceedings.

4. It is emphasized that the task
of constitution of Local Committees as
per this Instruction be finalized within
15 days of issue of this Instruction or
30-4-2022,
whichever
is
later,
and
compliance report may be sent by the
Jurisdictional
Pr.
CCsIT/Pr.
CCIT
(Intl.Tax.)/ Pr.CCIT(Exemptions) to their
respective Zonal Members with a copy to
Member (IT&R), CBDT.

5. This issues with the approval
of Chairman, CBDT.

Enclosure: As above

(Ravinder Maini)

(Director)(ITA-II), CBDT.

Copy to:

1) The Chairperson, CBDT and
all Members, CBDT

2) PS to the Secretary (Revenue)

3) All JS/CsIT, CBDT

4) ITCC division, CBDT

5) Jt. CIT, Data base Cell for
uploading on the Department Website:

www.irsofficersonline.gov.in
5 All. Harish Chandra Bhati Vs. Principal Commissioner of Income Tax, Noida & Ors.
1593

6) O/o Pr. DGIT (Systems) for
uploading
on
Official
Website:
www.incometax.gov.in

7) CIT (Media Coordinator),
CBDT

8) Guard file

(Ravinder Maini)

(Director)(ITA-II), CBDT.

Annexure:

Quarterly Report on functioning
of
Local
Committees
to
deal
with
taxpayers' grievances from High-Pitched
Scrutiny Assessments

Date: Quarter 1/2/3/4, Year____

Number
of
grievanc
es
brought
forward
by
the
Local
Committ
ees from
the
last
quarter

 (1)
Number
of
grievanc
es
received
by
the
Local
Committ
ee
during
the
quarter

 (2)
Number
of
grievanc
es
disposed
of by the
Local
Committ
ee
during
the
quarter

 (3)
Number
of
grievanc
es
pending
with the
Local
Committ
ee at the
end
of
the
quarter

 (4)
Numbe
r
of
grieva
nces
where
assess
ment
was
found
to
be
highpitche
d

(5)
Synops
is
of
admini
strativ
e
action
s taken
in
respect
of
cases
found
highpitche
d
(Name
, PAN
and
Asst.
Year
Wise
descri
ption
has to
be
given.)

(6)

(Note: The above information is
to be submitted by 15th of the month
following the quarter ended)"

8. On 05.05.2022, this Court passed
the following order:

"Sri
S.P.
Singh,
learned
Additional Solicitor General has filed a
personal affidavit dated 03.05.2022 of Sri
Tarun Bajaj, Revenue Secretary to the
Government of India annexing therewith a
circular dated 23.04.2022 providing for
constitution of local committees which
prima
facie
appears
to
be
wholly
unsatisfactory and a complete eyewash to
address the problem being faced by
assessees on account of conflicting orders
by the National Faceless Assessment
Centre, New Delhi inasmuch as it merely
provides a forum for complaint without
any relief to the complainant and without
fixing of accountability of the erring
officers. It is highly improbable that an
assessee shall make complaint against his
assessing officer whether faceless or nonfaceless without any relief to him from
arbitrary assessment order or order passed
in breach of principles of natural justice.

Learned
Additional
Solicitor
General states that the Revenue Secretary
to the Government of India shall file a
better affidavit indicating solution to the
problem of conflicting orders, arbitrary
orders and frequent breach of principles of
natural justice by assessing authorities
including National Faceless Assessment
Centre, within two weeks.

Time as prayed is granted.

Put up as a fresh case on
19.05.2022 for further hearing."

9. In the personal affidavit filed today,
the respondent No.4 by means of personal
affidavit of Sri Tarun Bajaj, Revenue
Secretary to the Government of India, New
Delhi has stated in paragraphs-10 and 12,
as under:-

"10. It is further respectfully
submitted that even though a large number
of assessments were carried out efficiently
1594 INDIAN LAW REPORTS ALLAHABAD SERIES
and
effectively,
yet,
recognising
the
difficulties faced by the tax payers, the
Central Board of Direct Taxes issued
instruction F. No. 225/101/2021/-ITA-II, dt.
25/04/22, for dealing with taxpayers
grievances. The local committee ascertains
whether
the
additions
made
in
the
assessment order is not backed by any
sound reasons or logic, provisions of law
have
been
grossly
misinterpreted
or
obvious and well-established facts on
record have been ignored outrightly. The
said instruction also provides for initiation
of suitable administrative action against
the
erring
officer
in
case
where
assessments are found by the local
committee to be high-pitched or where
there is non-observance of principles of
natural justice, non- application of mind
or gross negligence of assessing officer/
Assessment Unit. Also, the findings of the
local
committee
are
considered
for
revisiting
SOP/policy
on
faceless
assessment and addressing systems related
issues.

12. The Petitioner has statutory
remedy under the Income Tax Act, 1961
which he may avail by filing revision
petition before the jurisdictional Principal
Commissioner of Income Tax under section
264
or
filing
appeal
before
the
Commissioner of Income Tax (Appeals)
under section 250. The Petitioner has also
filed application for witndrawal of Writ
Petition to avail the remedy available
under law. As such the Writ Petition is
liable to be dismissed."

10.

In
instructions/
Circular
F.No.225/290/2015-ITA-II,
dated
09.11.2015 issued by the Government of
India, Ministry of Finance, Department of
Revenue (CBDT), the Central Board of
Direct Taxes (for short "CBDT") itself has
noted that "it has been brought to the
notice of Board that the tendency to frame
high-pitched
and
unreasonable
assessment orders is still persisting due to
which grievances are being raised by the
taxpayers. Such grievances not only
reflect harassment of taxpayers but also
lead to generation of unproductive work
for Department as well as Appellate
Authorities."
Under
the
aforesaid
instructions
dated
09.11.2015,
Local
Committees were constituted to resolve
quickly the taxpayers' grievances on
account of high-pitched and unreasonable
additions
made
by
the
Assessing
Authorities. But it appears that tendency to
frame
high-pitched
and
unreasonable
assessment orders is still persisting as also
acknowledged by the respondents which
resulted
in
issuance
of
instructions/
Circular dated 23.04.2022 under Section
119 of the Income Tax Act, 1961 so as to
give it statutory backing.

11. This Court is also frequently
coming across the writ petitions in which
impugned orders reflect non-observance of
principles of natural justice and even reply
submitted by assessees are not being
considered by Assessing Officers under the
faceless regime as well as non-faceless
regime under the Act, 1961.

12. Tax payers are one of the
important pillars of economy of the
country. Their harassment not only causes
jolt to the economy of the country and
employment but also comes in the way of
economic
policy
of
the
government
including the policy "Ease of Doing
Business".
The
instructions
dated
23.04.2022 issued by the CBDT, in
exercise of powers conferred under Section
119 of the Act, 1961 and statement made by
the respondent No.4 in the aforequoted
para-10 of the personal affidavit dated
5 All. Harish Chandra Bhati Vs. Principal Commissioner of Income Tax, Noida & Ors.
1595
19.05.2022, needs to be implemented truly
and
effectively.
Therefore,
necessary
mandamus needs to be issued to the
respondents.

13. In view of the aforesaid, the writ
petition is disposed off giving liberty to
the petitioner to avail statutory remedy of
appeal or revision under the Act, 1961 as he
may be advised. All pending applications
are disposed off.

14. In view of the discussions made
above,
particularly
considering
the
instructions dated 23.04.2022 issued by the
CBDT in exercise of powers conferred
under Section 119 of the Act, 1961 and the
statement of the respondent No.4 made in
para-10 of the personal affidavit filed on
19.05.2022, the following directions in the
nature of mandamus are issued:-

(i) The respondent No.4 shall
ensure
that
copies
of
instructions
F.No.225/101/2021-ITA-II, Government of
India, Ministry of Finance, Department of
Revenue, Central Board of Direct Taxes
dated 23rd April, 2022 is circulated within
a
month
from
today
to
Tax
Bar
Associations at District Level, State Level
and National Level for information along
with the following contents of paragraph10
of
the
personal
affidavit
dated
19.05.2022:-

"The
said
instruction
also
provides
for
initiation
of
suitable
administrative action against the erring
officer in case where assessments are
found by the local committee to be highpitched or where there is non-observance
of principles of natural justice, non-
application of mind or gross negligence of
assessing officer/ Assessment Unit."

(ii) The respondent No.4 shall
ensure that the aforesaid instructions dated
23.04.2022
along
with
afore-quoted
contents of paragraph-10 of the personal
affidavit
dated
19.05.2022
shall
be
displayed on the official website of the
Income Tax Department for awareness and
information of taxpayers and consultants.

(iii) The constitution of Local
Committees, procedure for submissions,
receipts and disposal of grievances as
provided in the aforesaid instructions dated
23.04.2022 and the above noted contents of
the paragraph 10 of the personal affidavit
dated 19.05.2022, for the purposes of
publicity
and
awareness
amongst
taxpayers/ assessees to achieve the mandate
of Clause 2.A.(iv) of the aforesaid
instructions dated 23.04.2022, shall be
published regularly for one year at least
once in three months in two National
Newspapers (one in English and the other
in Hindi) and two State Level Newspapers
(one in Hindi or Local Language and the
other in English).

(iv)
In
the
event
"Local
Committees" as referred in Clause 2.A.(i)
of
the
aforesaid
instructions
dated
23.04.2022 in all the regions across the
country including Pr.CCIT (Exemptions)
and Pr.CCIT (International Taxation) have
not
yet
been
constituted,
then
the
respondent No.4 shall ensure that Local
Committees as provided in Clause 2.A.(i)
of
the
aforesaid
instructions
dated
23.04.2022 be constituted within fifteen
days from today and be made functional.

(v) The respondent No.4 shall
ensure to establish a monitoring cell at the
level of Government or CBDT within a
month from today, if not established so far,
which shall ensure regular monitoring of
the Local Committees, follow up actions
and
review
by
Principal
Chief
Commissioners of Income Tax and Zonal
Members, and analyse the quarterly reports
for
effective
implementation
of
the
1596 INDIAN LAW REPORTS ALLAHABAD SERIES
instructions dated 23.04.2022 and the statement
made in paragraph 10 of the personal affidavit
dated 19.05.2022 aforequoted.

(vi) The Local Committee shall
dispose off each grievance petition within two
months from the end of the month in which
grievance petition is received by it and its result
and action taken on administrative side, if any,
shall be communicated in writing to the
concerned assessee within next four weeks.

(vii) The CBDT shall regularly
monitor and shall take all necessary steps from
time to time for effective implementation of the
scheme/ instructions dated 23.04.2022 and
necessary modifications/ improvements therein
in the interest of assessees so as to achieve the
object of the aforesaid scheme/ policy decision/
instructions dated 23.04.2022.
----------
(2022)05ILR A1596
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 25.04.2022

BEFORE

THE HON'BLE SURYA PRAKASH
KESARWANI, J.
THE HON'BLE JAYANT BANERJI, J.

Writ Tax No. 518 of 2022

Uphill Farms Pvt. Ltd., Noida, U.P.
 ...Petitioner
Versus
Union of India & Anr. ...Respondents

Counsel for the Petitioner:
Vedika Nath, Sri Nishant Mishra

Counsel for the Respondents:
A.S.G.I., Sri Gaurav Mahajan, Sri Manu
Ghildyal

A. Civil Law - Income Tax Act , 1961 -
Section 147 - The assessing officer under
Section 147 of the Act has power to reassess
any income which escaped assessment to tax
for any assessment year subject to provisions of
Section 148 to 153 of the Act.

B. Reassessment of Income under Section 147
of the Act cannot be made on change of
opinion.

C. The words 'reason to believe' suggest that
belief must be that of an honest and reasonable
person based upon reasonable grounds and the
I.T.O. may act on direct or circumstantial
evidence but not on mere suspicion, gossip or
rumour.

D. Notice issued to the petitioner u/s 148 of the
Act failed to pass the standard of reason as that
of an honest and prudent person.

Writ Petition allowed with cost of Rs.
5,000. (E-12)

List of Cases cited:-

1. St. of U.P. & ors. Vs Aryaverth Chawal Udyog
& ors. (2015)17 SCC 324(Paras 28-50)

2. The Commissioner of Sales Tax, U.P. Vs M/s
Bhagwan Industries (P) Ltd., Lucknow AIR 1973
SC 370(Para 9 and 10)

3. M/s Parmarth Steel & Alloys Pvt. Ltd. Vs St. of
U.P. & ors. Writ Tax No. 874/2010(Decided on
28.03.2022)(Para 17)

4. Shivnath Singh Vs Appellate Assistant CIT
(1972)3 SCC 234(Para 10)

5. U.O.I. & ors. Vs M/s Rai Singh Dev Singh
Bisht & ors. AIR 1974 SC 478

6. I.T.O. Vs Lakhmani Mewal Das (1976)3 SCC
757(Para 11 and 12)

7. M/s S. Gangasaran & Sons (P) Ltd., Calcutta
Vs I.T.O. & ors. (1981)3 SCC 143(Para 6)

8. Income Tax Officer, Ward No. 62 Vs Tech
Span India Pvt. Ltd. & anr. (2018)6 SCC 685
(Para 14-18)

9. Radha Krishna Industries Vs St. of H.P.
(2021)6 SCC 771